What happened
Target Hospitality secured contracts totalling $132 million to build and operate temporary housing for over 1,000 workers. These workers are converting a Bitcoin mining facility into a 1.6 gigawatt AI data centre in Dickens County, Texas. Chief Commercial Officer Troy Schrenk identified the U.S. data centre construction boom as the company's most lucrative growth opportunity. Target Hospitality also owns the Dilley Immigration Processing Centre, an ICE detention facility, which has faced court allegations of inadequate food and medical care for detainees.
Why it matters
AI data centre construction introduces significant logistical and human resource challenges for founders and architects. Procurement teams must now account for substantial, specialised temporary housing costs and associated operational risks, including those tied to contractor track records. This shifts the cost curve for large-scale AI infrastructure deployment beyond hardware and energy, introducing new considerations for project planning and vendor selection.
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